HAVING REGARD
to Article 5 b) of the Convention on the Organisation for Economic Co-opération
and Development of 14 December 1960;

HAVING REGARD
to the OECD Council Recommendation on Bribery in International Business
Transactions [C(94)75/FINAL)];

CONSIDERING that
bribery is a widespread phenomenon in international business transactions,
including trade and investment, raising serious moral and political concerns
and distorting international competitive conditions;

CONSIDERING
that the Council Recommendation on Bribery called on Member countries to take
concrete and meaningful steps to combat bribery in international business
transactions, including examining tax measures which may indirectly favour
bribery;

On the proposal of the Committee on Fiscal Affairs and
the Committee on International Investment and Multinational Enterprises:

I. RECOMMENDS that those Member countries which do not disallow the
deductibility of bribes to foreign public officials re-examine such treatment
with the intention of denying this deductibility. Such action may be
facilitated by the trend to treat bribes to foreign public officials as
illegal.

II. INSTRUCTS the Committee on Fiscal Affairs, in cooperation with
the Committee on International Investment and Multinational Enterprises, to
monitor the implementation of this Recommendation, to promote the Recommendation
in the context of contacts with non-Member countries and to report to the
Council as appropriate.